The Role of Listing Price Strategies on the Probability of Selling a House: Evidence from Vietnam

Bich Hong Nguyen Thi (), Trong Hoai Nguyen () and Thanh Hiep Truong ()
Additional contact information
Bich Hong Nguyen Thi: Faculty of Economics, University of EconomicsHo Chi Minh City
Trong Hoai Nguyen: Faculty of Economics, University of EconomicsHo Chi Minh City
Thanh Hiep Truong: Faculty of Economics, University of EconomicsHo Chi Minh City

Real Estate Management and Valuation, 2020, vol. 28, issue 2, 63-75

Abstract: The aim of this paper is to measure the dynamic effects of listing price strategies and housing features on the probability of selling a house over the marketing period by adopting a two-stage regression analysis. In the first stage, we define the listing price strategies as the gaps between the actual listing price and expected selling price, estimated by a hedonic model. The Cox Probability Hazard models are applied in the second stage to measure the effects of listing price strategies on the probability of sales over various listing periods, such as 30-day, 90-day, 180-day and 270-day listing periods.We find that overpriced listing strategies have a significant impact on the probability of sale at any point during the first 30 days of marketing time. This effect seems to diminish and disappear after six months of marketing time. This shows that the first 30 days of the marketing time are critical and housing liquidity is strongly affected by pricing strategies. When the time on market is over 30 days, the influence of the seller’s pricing decisions on housing liquidity is diminished.

Keywords: Vietnam Housing Market; Listing Price Strategies; Probability of Sale; Cox Proportional Hazard Model (search for similar items in EconPapers)
JEL-codes: C51 D01 R21 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/remav-2020-0016 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:28:y:2020:i:2:p:63-75:n:6

DOI: 10.1515/remav-2020-0016

Access Statistics for this article

Real Estate Management and Valuation is currently edited by Sabina Zrobek

More articles in Real Estate Management and Valuation from Sciendo
Bibliographic data for series maintained by Peter Golla ().